Section 6 in Insurance Regulatory and Development Authority of India (Payment of commission or remuneration or reward to insurance agents and insurance intermediaries) Regulations, 2016
6. Reward to individual insurance agent or insurance intermediary by insurers.
(a)The reward to be paid to an insurance agent or an insurance intermediary over and above the commission or remuneration shall be decided by the insurer based on an objective and transparent criteria approved by the Board.(b)For the purposes of rewards under these regulations, there shall be broadly three channels of distribution namely insurance agents, insurance intermediaries whose revenues from other than insurance intermediation is fifty percent or less of their total revenue from all the activities and insurance intermediaries whose revenues from other than insurance intermediation is more than fifty percent of their total revenue from all the activities.(c)No reward shall be paid to an insurance intermediary whose revenues from other than insurance intermediation activities is more than fifty per cent of their total revenue from all the activities.(d)Reward - Life Insurance(i)Reward in life insurance to be calculated on an overall basis for insurance agents and insurance intermediaries respectively and not linked to each and every policy solicited by an insurance agent or an insurance intermediary.(ii)Reward being not more than 20% of first year commission or remuneration paid to insurance agents and insurance intermediaries(e)Reward - General Insurance including health insurance(i)Reward in the general insurance to be calculated separately for health insurance and other than health insurance for insurance agents and insurance intermediaries respectively and not linked to each and every policy solicited by an insurance agent or an insurance intermediary.(ii)Reward being not more than 30% of commission or remuneration paid to insurance agents and insurance intermediaries
